Italian Companies Flock to Debt Markets as Bank Lending Stays Tight

Debt Issuance Rises 56% From a Year Earlier

MILAN—Debt issuance by Italian companies has surged so far this year, increasing 56% over the same period last year as businesses continue to shift away from bank financing and go to the market for fresh capital to exploit the tentative recovery in the Continent's most battered economies.

According to Dealogic, Italian companies have tapped the debt market for $107.2 billion in 2014, which accounted for 47% of all corporate debt...